With No Budget, California to Cut 20,000 State Jobs

California, which is on the brink of running
out of cash, will notify 20,000 state workers on Tuesday their jobs may
be eliminated, a spokesman for Governor Arnold Schwarzenegger said on
Monday.

The
announcement came a day after California lawmakers narrowly failed to
pass a $40 billion budget that would have plugged the state's deficit
with a mix of tax hikes and spending cuts.

"In
the absence of a budget, the governor has a responsibility to realize
state savings any way he can," said Aaron McLear, a spokesman for the
Republican governor. "This is unfortunately a necessary decision."

The
layoff notices will affect about 20 percent of state workers, McLear
said, adding the cuts would extend to every part of state government.

The positions would be eliminated in June in preparation for California's next fiscal year, which starts in July.

California,
America's most populous state and the world's eighth biggest economy,
has experienced a dramatic fall in revenues because of the housing
downturn, rising unemployment and a sharp pullback in consumer
spending.
To
conserve cash, the state has stopped public works projects, furloughed
state employees for two days a month and postponed sending out tax
refunds.
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